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News > Companies
Midway Air calls it quits
September 12, 2001: 3:38 p.m. ET

Bankrupt airline sees drop in travel, shuts down; 1,700 workers lose jobs
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NEW YORK (CNNfn) - Bankrupt Midway Airlines said Wednesday it is ceasing operations immediately in order to preserve the company's value, in anticipation of a sharp drop in air travel after Tuesday's terrorist attacks.

Midway said 1,700 employees will be terminated effective immediately and will be paid at their next scheduled payday.

"We are deeply troubled by the impact this action will have on our customers, employees, creditors and community," a Midway spokesman said. "Unfortunately, we simply do not have the resources necessary to permit us to reorganize in this environment."

The company said it will begin returning aircraft and look for purchasers for assets immediately. All ticket holders for future travel will be given refunds or tickets on another carrier.

Instructions for refunds are available on the company's Web site.

Midway filed for Chapter 11 bankruptcy protection on Aug. 14, letting 700 workers go.

At the time of the announcement, all airline flights in the United States still were grounded by the Federal Aviation Administration one day after hijacked airliners destroyed the World Trade Center's twin towers in New York and damaged the Pentagon near Washington, D.C.

Industry experts have predicted demand for air travel will fall because of consumers' safety concerns after the attacks.

Midway said it anticipates paying all obligations incurred following its Chapter 11 bankruptcy filing on Aug. 14 and will propose a reorganization plan to deal with all obligations that arose prior to the filing. graphic


-- from staff and wire reports

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